Record growth in property values in Cheltenham and the Cotswolds will help maintain momentum in the region’s hospitality sector, according to a specialist at Colliers International.
Hotels team director Peter Brunt said hospitality businesses were underpinned by residential values locally.
“Judging by the record numbers of £1m-plus home sales in Cheltenham and the Cotswolds there is no end in sight for what is one of the most strongly performing hospitality sectors in the country.”
Cheltenham saw a bigger proportional increase in sales of homes in the £1m-plus bracket than London, according to latest Land Registry data, with sales up 96 per cent with no fewer than 45 homes sold. The increase in the wider Cotswolds Area of Natural Beauty was 41 per cent.
Peter Brunt said: “The 8.1 per cent increase in house prices has an immediate knock on effect on the Bed & Breakfast market in particular, where value is underpinned by the residential value.
“Rising house prices mean rising wealth. This means there are lots of people with the money to spend on eating out and this impacts on values.”
He added: “We’re witnessing strong interest in properties currently on the market with aggressive competitive bidding being seen on a number of properties and we currently have a further five sales agreed or in solicitors’ hands.
“As trading for pubs in the region continues to be strong the number changing hands in the over £1m price bracket has grown, with some exceptional units even breaking the £2m barrier.”
The hotels team at Colliers International was involved in brokering nine sales in the last year including Number Four at Stow, The Puesdown Inn, Stanton Manor, The Highway in Burford as well as a clutch of confidential sales.
Peter Brunt said the Cotswolds represent archetypal England as far as foreign visitors are concerned.
“The Cotswolds are benefitting from extraordinary national and international factors, but the backdrop to the current boom remains our unique heritage and location,” he said.
“The Cotswolds have become a favourite destination for celebrities which gives further gloss to an area with outstanding natural advantages in terms of its history and geography.”
Peter Brunt concluded: “Operators are already feeling the increased demand from overseas visitors and this is one of the contributing factors fuelling
a strong demand for hospitality businesses in the region.”